Aemetis, Inc. (NASDAQ:AMTX) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse Aemetis, Inc.'s (NASDAQ:AMTX) business as it appears the company may be on the cusp of a considerable accomplishment. Aemetis, Inc. operates as a renewable natural gas and renewable fuels company. The company’s loss has recently broadened since it announced a US$46m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$97m, moving it further away from breakeven. Many investors are wondering about the rate at which Aemetis will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Aemetis

According to the 5 industry analysts covering Aemetis, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$18m in 2026. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Aemetis' growth isn’t the focus of this broad overview, but, take into account that generally an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. Aemetis currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Aemetis to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aemetis' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Aemetis' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aemetis' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.